Dividend taxation and intertemporal tax arbitrage

Journal of Public Economics

Volumn 93, Issue 1-2, 2009, Pages 142-159

  Korinek, Anton ^a   Stiglitz, Joseph E ^b  

^a UNIVERSITY OF MARYLAND   (United States)

^b Och Spine at New York Presbyterian Hospitals   (United States)

Author keywords

Aggregate investment; Capital constraints; Dividend taxation; Political economy of taxation

Indexed keywords

EID: 57749168843     PISSN: 00472727     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jpubeco.2008.08.001     Document Type: Article

References (38)

1. Alvarez L.H.R., Kanniainen V., and Södersten J. Tax policy uncertainty and corporate investment: a theory of tax-induced investment spurts. Journal of Public Economics 69 1 (1998) 17-48
2. Amromin G., Harrison P., and Sharpe S. How did the 2003 dividend tax cut affect stock prices?. FRB Finance and Economics Discussion Series 2005-61 (2007)
3. Asquith P., and Mullins D. Equity issues and offering dilution. Journal of Financial Economics 15 1/2 (1986) 61-89
4. Auerbach A.J. Wealth maximization and the cost of capital. Quarterly Journal of Economics 93 3 (1979) 433-446
5. Auerbach A.J., and Hassett K.A. Dividend taxes and firm valuation: new evidence. American Economic Review 96 2 (2006) 119-123
6. Auerbach A.J., and Hassett K.A. The 2003 dividend tax cuts and the value of the firm: an event study. In: Auerbach A., Hines J., and Slemrod J. (Eds). Taxing Corporate Income in the 21st Century (2007), Cambridge University Press, Cambridge, MA
7. Baker G.P., Jensen M.C., and Murphy K.J. Compensation and incentives: practice vs. theory. Journal of Finance 43 3 (1988) 593-616
8. Bhattacharya S. Imperfect information, dividend policy, and 'the bird in the hand' fallacy. Bell Journal of Economics 10 1 (1979) 259-270
9. Black F. The dividend puzzle. Journal of Portfolio Management 2 2 (1976) 5-8
10. Blouin J.L., Raedy J.S., and Shackelford D.A. Did dividends increase immediately after the 2003 reduction in tax rates?. NBER Working Paper w10301 (2004)
11. Brown J.R., Liang N., and Weisbenner S. Executive financial incentives and payout policy: evidence from the 2003 dividend tax cut. Journal of Finance 62 4 (2007) 1935-1965
12. Chen H.-C., and Ritter J.R. The seven percent solution. Journal of Finance 55 2 (2000) 1105-1131
13. Chetty R., and Saez E. Dividend taxes and corporate behavior: evidence from the 2003 dividend tax cut. Quarterly Journal of Economics 120 3 (2005) 791-833
14. Chetty R., and Saez E. The effects of the 2003 dividend tax cut on corporate behavior: interpreting the evidence. American Economic Review Papers and Proceedings vol. 96 (2006) 124-129
15. Chetty R., and Saez E. An agency theory of dividend taxation. NBER Working Paper vol. w13538 (2007)
16. DeAngelo H., and DeAngelo L. Dividend policy and financial distress: an empirical investigation of troubled NYSE firms. Journal of Finance 45 5 (1990) 1415-1431
17. Edlin A., and Stiglitz J.E. Discouraging rivals: managerial rent-seeking and economic inefficiencies. American Economic Review 85 5 (1995) 1301-1312
18. Gordon R., and Dietz M. Dividends and taxes. In: Auerbach A., and Shaviro D. (Eds). Institutional Foundations of Public Finance: Economic and Legal Perspectives (2009), Harvard University Press, Cambrdige, MA
19. Gourio, François, Miao, Jianjun (2007), "Dynamic Effects of Permanent and Temporary Dividend Tax Policies on Corporate Investment and Financial Policies," Boston University, mimeo.
20. Greenwald B.C., Stiglitz J.E., and Weiss A. Informational imperfections in the capital market and macroeconomic fluctuations. American Economic Review 74 2 (1984) 194-199
21. Greenwald B.C., and Stiglitz J.E. Towards a New Paradigm in Monetary Economics (2003), Cambridge University Press
22. Grossman S.J., and Hart O.D. Takeover bids, the free-rider problem, and the theory of the corporation. Bell Journal of Economics 11 1 (1980) 42-64
23. Hall R.E. Commentary on "Financial Factors in Business Fluctuations," Proceedings (1988), Federal Reserve Bank of Kansas City
24. Jensen M.C. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 76 (1986) 323-329
25. King M. Public Policy and the Corporation (1977), Chapman and Hall, London
26. Kocherlakota N.R. The equity premium: it's still a puzzle. Journal of Economic Literature 34 (1996) 42-71
27. Korinek, Anton and Stiglitz, Joseph E. (2008), "Political Economy in a Contestable Democracy" Columbia University, mimeo.
28. Mehra R., and Prescott E.C. The equity premium: a puzzle. Journal of Monetary Economics 15 (1985) 145-161
29. Myers S.C., and Majluf N.S. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 12 (1984) 187-221
30. Poterba J., and Summers L. The economic effects of dividend taxation. In: Altman E., and Subrahmanyam M. (Eds). Recent Advances in Corporate Finance (1985), Richard D. Irwin Publishers, Homewood, IL 227-284
31. Ross S. The determination of financial structure: an incentive-signalling approach. Bell Journal of Economics 8 1 (1977) 23-40
32. Sinn H.-W. The vanishing Harberger triangle. Journal of Public Economics 45 (1991) 271-300
33. Slemrod J. Effect of taxation with international capital mobility. In: Aaron H., Galper H., and Pechman J.A. (Eds). Uneasy Compromise: Problems of a Hybrid Income-Consumption Tax (1988), Brookings, Washington, DC 115-155
34. Stein J.C. Takeover threats and managerial myopia. Journal of Political Economy 96 1 (1988) 61-80
35. Stiglitz J.E. Some aspects of the pure theory of corporate finance: bankruptcies and take-overs. Bell Journal of Economics 3 2 (1972) 458-482
36. Stiglitz J.E. Taxation, corporate financial policy, and the cost of capital. Journal of Public Economics 2 (1973) 1-34
37. Stiglitz J.E. The corporation tax. Journal of Public Economics 5 3-4 (1976) 303-311
38. Stiglitz J.E., and Weiss A. Credit rationing in markets with imperfect information. American Economic Review 71 (1981) 393-410